Business Supervisor - How They Can Help You

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Business supervisor almost always represent the seller or the deal in a transactional role. The seller pays their commission and even if they are assisting you in the process, they may in fact have a fiduciary duty to the seller. This is not to say that they won't provide you with helpful advice. Keep in mind that business supervisor do not work like real estate agents in every sense.

Even though you consider yourself a very savvy business buyer, there are three things that a business supervisor can do that are very helpful.

Business For Sale Listings

They can provide you with access to business for sale listings and details about the business that you may not discover on your own.

Always Good to Have a Buffer Between You and the Seller

They can be a conduit to help deliver bad news to the seller. There may be instances where you have to retract or modify an offer and certainly times where you'll need to adopt an aggressive negotiating position. Since you'll most likely need the seller to train you after the purchase, it's not a good idea to aggravate them too severely. As such, let the business supervisor deliver the bad news.

The Paperwork is Astounding

A business purchase, no matter how small, requires a tremendous amount of coordination and document chasing. The data you'll need from a seller to evaluate a business, the documentation required to close a deal and the overall chasing that must be done between buyer/seller and their professional advisors, can be astounding. A good business supervisor will be an enormous help putting all of it together.

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Why Some "Ordinary" Businesses Sell for High Price?

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Certain businesses command an enormous multiple regardless of the business's size. There are certain fundamentals that any business can have which will increase its value when the time comes to sell. These include:

• Clean books and records
• A reasonable selling price
• Good terms, including seller financing
• A proper transition period to a new owner
• Non specialized skills required to run the business

These are all things that any seller can work towards implementing so that they ultimately get a higher price.

Recurring Revenue:

Any business that has a built in revenue base will command a higher selling price. It's a whole lot more enticing for a buyer to know that they will have and immediate and locked in long term revenue stream the day they get the keys to the business.

One of the most challenging aspects to business is when you have to "go into business everyday." When you have a company whereby there are contracts in place, written or verbal, that provide you with a base income every month, it's a huge benefit.

The concept of recurring revenue is not only attractive; it just makes good business sense. It's far easier to expand a business knowing that you have a base to work from everyday. It's also a lot easier to sell additional products or services to a customer who is already buying from you.

 

Limited Specialized Knowledge

Any business where a new owner with general business skills can take over and run will improve the value versus ones where specialized knowledge, experience, licensing, etc. is required.

While some businesses command massive premiums, the potential growth may be limited. However, the downside risk is far less than other types. Also, these lend themselves to absentee run situations which make them even more attractive to some. On the other hand, if you have entrepreneurial blood running through you veins, you'll probably be bored with these particular types and so there are many other options available to you as well.

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How to Value a Business

 

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Accurately valuing a small business is often the most challenging part of the process for prospective business buyers. However, it doesn't have to be an overwhelming or difficult undertaking. Above all, you should realize that valuation is an art, not a science. As a buyer, always keep in mind that the "Selling Price" is NOT the purchase price. Quite often it does not even remotely represent what the business is truly worth.

Naturally, a buyer's valuation is usually quite different from what the seller believes their business is worth. Sellers are emotionally attached to their businesses. They usually factor their years of hard work into their calculation. Unfortunately, this has no business whatsoever being in the equation.

The challenge for you, the buyer, is to formulate a valuation that is accurate, and will prove to provide you with an acceptable return on your investment.

There are several ways to calculate the value of a business:

• Asset Valuations: Calculates the value of all of the assets of a business and arrives at the appropriate price.
• Liquidation Value: Determines the value of the company's assets if it were forced to sell all of them in a short period of time (usually less than 12 months).
• Income Capitalization: Future income is calculated based upon historical data and a variety of assumptions.
• Income Multiple: The net income (profit/owner's benefit/seller's cash flow) of a business is subject to a certain multiple to arrive at a selling price.

Let's look at each to determine what's best for your purchase:

Asset based valuations do not work for small business purchases. Assets are used to generate revenue and nothing more. If a business is "asset rich" but doesn't make much money, how valuable is the business altogether? Conversely, if a business has limited assets, such as computers and office equipment, but makes a ton of money, isn't it worth more?

Income Capitalization is generally applicable to large businesses and most often uses a factor that is far too arbitrary.

The Multiple Method is clearly the way to go. You have probably heard of businesses selling at "x times earnings." However, this can be quite subjective. When buying a small business, every buyer wants to know how much money he or she can expect to make from the business. Therefore, the most effective number to use as the basis of your calculation is what is known as the total "Owner Benefits."

The theory behind the Owner Benefit number is to take the business's profits plus the owner's salary and benefits and then to add back the non cash expenses. History has shown that this methodology, while not bulletproof, is the most effective way to establish the valuation basis of a small business. Then, a multiple, based upon a variety of factors, is applied to this number and a valuation is established.

A Note About Add Backs

After completing any add backs, it is critical that you take into consideration the future capital requirements of the business as well as debt service expenses. As such, in capital intensive businesses where equipment needs replacing on a regular basis, you must deduct appropriate amounts from the Owner Benefit number in order to determine both the true value of the business as well as its ability fund future expenditures. Under this formula, you will arrive at a "net" Owner Benefit number or true Free Cash Flow figure.

If You're New at This, Here's What to Do:

• If you don't know how to read an income statement, then learn. It's important for this process. It's simple, and can be done quickly. Work with your accountant, if necessary, to determine the true Owner Benefits of the business.
• Be careful about the add backs. Make certain that any benefits being added back are not necessary expenses needed to run the business. You can only add back something that has been expensed. Determine your investment level and an acceptable ROI. Understand that value is personal. If the business is right for you, it is all right to pay a slight premium, but not to drastically overpay.
• Consider applying other valuation formulas simply as a test to your figure.

Final Word: Never, ever buy a business just because the price is right - first and foremost be certain that the business itself is right for you!

http://www.2misi.com/article/2012/06/how-to-value-a-business

Five Questions Business Buyers Should Ask, but Usually Don't

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The average business for sale buyer goes into the buying process with an arsenal of boilerplate questions for the seller. But the questions buyers really need answered are the questions they usually don't think to ask.

To protect themselves, buyers have traditionally relied on a standard list of questions to shed light on the company's historical performance and current financial condition. Due diligence itself is designed to focus the buyer's attention on issues such as financial conditions, business operations, personnel, condition of assets, etc. - all of which need to be addressed before the buyer can made an informed buying decision.

But a growing trend in the business for sale marketplace is making it necessary for buyers to ask a new set of questions. Business supervisor continue to play a vital role in the business marketplace and participate in a substantial number of business for sale transactions.

For some buyers, the lack of business supervisor expertise can ultimately lead to a purchasing decision based more on gut feelings than facts. For those business buyers unsure of their ability to make a sound purchase decision on their own, professional business supervisor can play an important role.

While answers to the regular financial and operational questions are still crucial, there are five other questions buyers also need to ask.

Question #1: "When Did the Owner Decide to Sell the Business?"

The reason behind the owner's decision to sell is less important than when the owner decided to put the business on the market.

Ideally, the answer buyers should look for is that the listing didn't arise suddenly, but came as the result of a well thought out, multi year plan conceived by the owner as a means of achieving his personal and business goals. If that's true, the owner should be able to provide the buyer with a copy of the plan upon request.

But if the owner's decision to list the business happened quickly, that could be a red flag that the business is in trouble, that there are economic threats on the horizon, or that the owner hasn't taken the time to properly prepare due diligence materials.  

Question #2: "What Valuation Method Did the Owner Use to Determine the Selling price?"

In a typical business for sale transaction, the buyer and the seller each perform their own valuation of the business' worth. Many sellers assess their business' worth by way of an asset based valuation method simply because it is the easiest valuation method. Unfortunately, it is also the least accurate way to determine a value for small businesses. Income capitalization methods are equally unreliable for small company valuations.

Instead, savvy small business buyers utilize a multiplier valuation method based on the owner's benefit. If the seller also employs a multiplier valuation method, both parties enter the negotiation process on the same page. If not, the negotiation process will likely become an exercise in apples and oranges. The buyer and the seller will both experience frustration because they are unable to agree on a common basis for valuation. 

Question #3: "What Does the Owner Want to Walk Away With?"

Although it may seem unlikely that the seller will disclose his bottom line before the negotiation process has even started, it's important for the buyer to make an effort to discover what matters to the seller.

At the very least, buyers who are willing to ask this question will begin to get an idea about the seller's non cash motivations. The vast majority of small business owners are just as concerned about the business' future as they are about how much money they will make on the sale. The seller's non cash motivations can be a powerful negotiation tool for buyers. When the negotiation process hits a wall, knowing everything that is important to a seller can sometimes close the deal.

Question #4: "What Would the Seller Do to Increase Sales and Profits"

More than anything else, buyers need to create opportunities to inject a dose of reality into the buying decision. Presumably, the person who is most qualified to offer a realistic perspective about the business and its future growth prospects is its owner. Yet sellers often prefer to paint a rosy portrait of the company rather than simply telling it like it is.

One of the ways a buyer can break through a reluctant seller's defenses is to invite the owner to make suggestions about how to increase capacity, market share and profitability. With the right approach, a buyer's appeal to owner expertise can change the seller's posture from defensive to collaborative.

 

Question #5: "Is the Seller Willing to Sign a Non Compete Clause?"

An established customer or client base is one of the reasons existing businesses are so attractive to buyers. That incentive disappears if the owner's intention is to sell the business and take the company's customers with him.

There is no surer way to surface a seller's real motives than for the buyer to request a contractual non compete clause. If the seller refuses, the buyer should proceed with caution since the business' customer base may be soft. On the other hand, if the seller agrees without blinking an eye, the existing client base can probably be used as a reliable gauge for financial projections.

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How to Successfully Buy a Business Online

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Thinking of turning your dream of starting a business into reality? Realizing the dream of starting a business, though, can be challenging without the right know how. Most small business buyers have never purchased a business before, and it can be difficult to know where to start. Going into business for yourself will undoubtedly require large amounts of commitment and drive to overcome fear of the unknown, but keeping four critical factors in mind can help ensure success when investing time and money into a small business.

Use Online Resources

The easiest way to learn about your options is to research what's available on an online business marketplace. Newspaper classifieds include a limited amount of the businesses for sale in one immediate area, while an online marketplace is more expansive. This kind of site offers a database full of available businesses in any area, which means that you can search locally or anywhere in the country if you are considering a change in location.

Be Savvy in Dealing with Sellers

Once you've located a business that interests you, contact the business owner. Make a list of any questions not answered, and be sure to get all the information you need from the seller. For example, it is a good idea to ask the reason why the business is being sold. Also, be sure to ask the seller to provide documentation for any numbers provided.

If the business seems like a good fit after receiving the answers, ask to view the business firsthand. If possible, visit the business without identifying yourself as a potential buyer to make sure you are satisfied with its appearance and location.

Don't be afraid to negotiate. Businesses generally sell for up to 25 percent of the seller's initial selling price, so there's no need to settle for numbers presented to you at the start without question.

Follow Through with Due Diligence

Once you've thoroughly communicated with a seller and all the information checks out, it can be tempting to want to speed up the process and sign a contract as quickly as possible. While the prospect of finally owning a business is exciting, there is still a need to work out contingencies. This process is known as "due diligence."

Although the numbers might sound good to you, it would be a good idea to bring in outside professionals such as business supervisor to validate them.

Embrace Lifestyle Change

Business owners often discover a new sense of freedom and purpose. They won't have to deal with a boss, their schedules - while less predictable - can be more flexible and a great sense of pride can come from seeing the business through to greatness.

http://www.2misi.com/article/2012/06/how-to-successfully-buy-a-business-online

Franchise - What They Can Help You

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A franchise is by no means a guarantee of success. Plus, a new franchise is basically a start up with some advantages. Master Franchisers will do a load of demographic and marketing studies evaluating potential customer base, drive-by traffic, etc., but the only thing that they cannot do is guarantee your success.

The Best Investment You Will Ever Make

When buying a business, you can and should expect to make at least 25%-33% return on your cash investment. Plus, you will have the opportunity to produce a steady personal cash flow, and you'll be building value that will pay you handsomely when the day arrives to sell the business.

Many people wrongly believe that acquiring a business is a risky investment. Personally, I think that putting your fate in someone else's hands has a heck of a lot more risk to it. While there is some inherent risk buying a business, much, if not all, can be eliminated simply by doing your research beforehand on any business you consider purchasing.

 

The Good News

Franchises can be a good place to begin your entrepreneurial career. If you want to greatly improve your chances of success then buy a franchise resale. Take advantage of one that's already established and successful. This way, you combine the best of both worlds: a franchise concept and the track record of an existing business. It just makes more sense.

While it is not always easy to locate resales, there are plenty of them around. The best way to find one is to address your search on two levels: call the Master Franchisers and ask if they can provide you with a resale listing in your area. Second, approach any current owner and ask him/her if they know of any that may be for sale. They will probably tell you that theirs is for sale "for the right" price. In either case, you will get leads to pursue. Of course, you can always go through regular channels such as your local paper, business consultants and online listings.

The other good part of buying an existing franchise is that you can implement all of the same strategies for identifying, negotiating and financing the purchase as you would when buying an existing non-franchised business. As such, it's wise for you to get hold of a good strategy guide for buying an existing business.

The Investigation Advantage With A Franchise

Probably the most attractive feature of buying a franchise from the buyer's point of view is that you can investigate any franchise much easier than an existing non-franchised business. The reason for this is because you will be able to look at other franchises under the same banner. You can speak with other franchisees in your area and they will be a wealth of information for you.

There is also a disadvantage when investigating and conducting Due Diligence on a franchise as you have to do it on two fronts. You have to check out the business itself, of course, but of equal or greater importance you have to evaluate the Master Franchiser to be sure that they will deliver everything they are supposed to do.

Your Partner is Your Competitor

The Master Franchiser's agenda is to open up as many locations as possible. While they may all say that they will not dilute the market, rest assured that unless they are contractually obligated to do otherwise they will keep compacting the territory. As they open more and more locations you may wind up competing with your own brand. Once a customer of yours finds another location to be more convenient - unless you have a rock solid relationship with that individual - you will lose their business.

How to Make Money in Franchising

The best way to accumulate wealth in franchising is to keep opening up or buying other locations. If you can, stick with one banner or within an affiliated group of companies. This way, your leverage with the Master Franchiser increases and you can also focus on running one particular type of business. Open up new locations too quickly can cause growth problems. However, as soon as you get the first one on track, look to acquire another one.

  In Summary

Franchises can be ideal for many people. If you want to really improve your success rate, then buy an existing location. It will provide you with all of the benefits of a franchise along with the added security of historical data and a proven track record.

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Why Buy an Existing Business?

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With so many options available to you, the question will become which vein of the business ownership arena should you pursue? Between franchises, existing businesses, start ups, home based businesses and MLMs, it does become a bit overwhelming.

When reviewing all of the possibilities you have to decide what will work best for you; however, your chances of success are clearly best when you buy an existing business or franchise for many reasons. With any new business you have two challenges: developing the product or service and then seeing what, if anything, people are willing to pay you for it.

Regardless of a company's past performance, an existing business or franchise will, at the very least, have a history from which you will be able to make certain decisions. Even if the company was not profitable in the past, your strengths may lend themselves perfectly to turning it into a viable venture. Furthermore, you have the ability to verify what the company did in the past that resulted in the current status of the operation. 

Ease of Investigation

In order to buy the right business or franchise, you will be required to do a thorough investigation of its past activities, its operations, its current status, the competition, the industry and its future potential. You will accumulate this information and then you will have to determine how it measures up with you at the helm. Clearly, this information gathering will be substantially more accurate and easier to obtain when dealing with an existing business or franchise, as you will have the resources available from which to get the details. 

Infrastructure

You will have the benefit of purchasing a company that has an infrastructure, including customers, suppliers, employees, equipment and systems. This will allow you to focus on building the business as opposed to a start up or new franchise where everything begins at point zero. 

Purchase Price Differences

Buying an existing business or franchise does not mean that it will cost you more. In fact, many times it's less expensive than building a new franchised location or launching a start up. Even in those cases where it may require a premium, at least you know what you are getting if you investigate it properly. Also, new locations can take a year or more to build. You can avoid all of this when buying a resale franchise.

 

Flexibility in Negotiating

You will have far more flexibility when negotiating the purchase of an existing business or franchise versus any other options available; it's not even close! Everything from the purchase price to financing is open to negotiation. Doesn't it make more sense to put yourself into an environment where you have the greatest number of options available?

 

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Business Selection for Aspiring Entrepreneurs

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Small business ownership is more popular than ever, but the road to owning a business that fits your personality and goals can be fraught with pitfalls if you're not fully prepared.

It's crucial not to underestimate the importance of choosing the right business. Imagine trying to run a marathon wearing running shoes that are three sizes too small. That's what it's like to operate the wrong business. Your efforts will likely be doomed from the start simply because you chose a business that doesn't match your interests.

As long as you keep in mind some key points when choosing a business, there's no reason to be discouraged. Thousands of aspiring business owners turn their entrepreneurial dreams into a reality every year. There are a variety of factors that go into the business selection process and, believe it or not, most of them are unrelated to the amount of capital you are able to invest in the business.

Choosing the Right Type of Business

The intangibles involved in selecting an appropriate industry and type of business can have an impact that lasts far beyond your first day on the job. Personal interest and passion are non negotiable elements in a successful business venture.

When the initial excitement of becoming a business owner wears off, you'll be left with the task of actually doing the work, day in and day out, for as long as you own the business. If the kind of work your business does isn't very interesting to you, you're setting yourself up for disappointment and frustration down the road.

A lot of new business owners begin the process by conducting an honest assessment of their interests. In fact, the most successful businesses often begin as a hobby which eventually inspires the business buyer to transition into ownership.

Another intangible has to do with the owner's skill set. Theoretically, it's possible to buy into a business in which you have absolutely no skills or experience. The problem is that the business may not be able to endure a lengthy learning curve. For example, if someone with no previous skills in the salon industry buys an existing hair salon with the intention of getting trained and certified along the way, a major issue would be how the business would survive while the owner learns the ropes. Would other employees fill the gaps, or is it a better idea to work alongside someone else before jumping into business ownership?

As you assess your interests, be realistic about your skill level. If your chosen field or industry requires training, factor it into your business plan from the start and make allowances to compensate for your gradual integration into daily operations.

Identifying the Right Business Opportunity

After you have determined the type of business that appeals to you and that you would be truly happy owning, the next step is to look for specific businesses that fit the bill in your price range. Unless you have a large amount of cash at your disposal, you will need to finance a good share of the purchase price, so a visit to your banker or other financing professional is a prerequisite to beginning your search. The goal should be to understand how much you can afford to pay for a business, factoring in the amount you may be able to borrow from a bank, friends and family, or the business seller.

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How to Buy the Right Business for You

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There are many proven steps that can help you determine what is the right business for you.
Put together your list of five golden rules of what any business you buy MUST have in place. Think about this and be specific.

As an example, here are my five golden rules for any business I consider buying:

Rule #1:	It must be a sales and marketing driven business - that's what I do best.
Rule #2:	It must have some element of exclusivity either in the product or within a territory. If not, I have no point of difference to offer new clients and maintaining current clients will always be a risk.
Rule #3:	The product or service must be a high margin item. This way, it's simply a matter of time, persistence, and sales savvy (my strength) for me to build the business. Plus, the margins will allow me to try new, creative ways of building the business.
Rule #4:	There must be a built in demand for the product or service. I've learned the hard way that trying to create demand is far too expensive.
Rule #5:	I do not want to sell anything that competes solely on price. There's no long term viability in that business model.

These are my rules. Unbreakable. Non-negotiable - no matter what! Guess what? They are bulletproof. When I find a business with these in place, and there are plenty, I am always going to be successful. You can certainly follow mine however; it is far more important that you tailor these to your specific strengths and situation.

I must admit that I do have a sixth and seventh rule, but they are negotiable: I like businesses that don't have a lot of employees and I prefer, if possible, to have a business where there are repeat orders from all clients. But again, I will sway from these two but never, ever from the other five.

Helpful hint: you probably won't come up with five today. Your list may even change a bit during your search. As you visit different businesses, speak with sellers, and conduct your research, you may discover certain things that are added or deleted from your list. That's OK. However, getting this list down as soon as possible is fundamental to your success!

The right business for you is one that will thrive from your strengths and not suffer from your weaknesses. Take a long, hard look at yourself. Picture yourself in the business. Of paramount importance is that you must perceive yourself as enjoying the business. If you can't, then there's just no way that you can be successful. The business that you choose has to be one that you'll be proud to own.

Another key factor is to avoid falling in love with the product; rather, you must fall in love with the profit and the lifestyle that it can deliver to you. 

Stay Focused - Don't Get Discouraged

During the search phase, it's easy to become discouraged by the vast number of available businesses. Don't get overwhelmed. Approach this methodically. If necessary, rule out the ones that you don't want. For example, if you're not interested in a gas station, restaurant or convenience store, you'll rule out 50% of all online listings. Search through listings pay attention to the profits, not just the selling price. Understand that listings do not always portray the whole picture. Contact sellers and arrange meetings. Prepare the questions you need to ask. You cannot buy a business from a listing. Visit businesses. With each meeting you'll get closer to knowing what is and isn't right for you.

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Today's Business Opportunity Market

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There are usually 2 independent factors that contribute to an increase in people looking to get into their own businesses. Lower interest rates play a significant role by allowing individuals to finance their business at attractive rates. Next, the job market: when jobs are plentiful, people first think about switching companies rather than considering self employment. When jobs are scarce, owning a business becomes a viable option.

Most people dream of owning a business. For most, there are 3 possible options that make sense: starting a business, buying a franchise, or buying an existing business. All have their pros and cons, and the choice depends upon the specific needs, goals and expectations of each individual.

Start Ups

I've always believed that everyone should start at least one business from scratch in his or her lifetime. It can be one of the most exhilarating and educational undertakings you will experience. Unfortunately, the chances for success are not very good. In fact, over 80% of all start ups fail in the first three years and 80% of those that make it, fail in the next two years. That means that 96% fail overall; quite an expensive education, isn't it?

The biggest culprit contributing to failure is lack of capital. I have started several businesses and I've now come to expect the following:

• Revenue comes in about half as quickly as originally expected
• Expenses are usually much higher than anticipated
• The world is never as excited to buy my products/services as I thought they would

Of course, many start ups survive, and thrive, way beyond expectations. Certainly, I've had some blockbuster experiences, but several dismal failures. If you're going to start a business, it is critical that you not only plan properly, but you are certain that you have the financial resources to endure a slower than expected period to profitability.

Franchises

Running a franchise can be a wonderful starting point for those making the leap from the corporate world to self employment. The beauty of franchises, in theory, is they provide you with a recipe to operate your business, covering all of the daily activities that you can expect to encounter. While it does sound attractive, one must also realize that the potential upside is generally limited.

Gone are the days of obtaining master franchise rights for an expansive territory, unless you buy into an unproven franchise. Typically, as soon as your franchise location begins to achieve some success, the master franchiser will open additional locations nearby. In effect, your "partner" becomes your competitor.

Keep in mind that the franchiser's agenda is to sell you a franchise. Surely, they want you to succeed, but opening new locations is their corporate objective. So while they may provide you with additional support, it is important for you to do your own research to be sure that you are capable of running the business and that the market and location are right. Your relationship with the franchisor is crucial. If you do not feel confident and trusting of them, then you must carefully consider whether or not you want them as your partner in this venture.

   
Existing Businesses

Buying an ongoing enterprise will provide you with benefits that are not available in either a start up or franchise. With an existing business, you'll have:

• Historical financial information
• A built in infrastructure (employees, customers, suppliers)
• Immediate cash flow

While this sounds wonderful, there may very well be a premium for these added benefits. However, when it comes to investing your money, the objective is to make a prudent long term decision and an existing business offers you the largest potential upside. Plus, you'll generally negotiate directly with the seller and so you can construct a creative deal that will allow you to acquire the business for less than you would expect.

Regardless of what road you choose to pursue, the most important thing is that you do something! Everyone knows that unless you have a senior position within a company, you simply cannot get rich working for someone else. Even if you're an executive with an attractive compensation package, you're one bad quarter away from unemployment.

For many, owning a business is a dream. For some, it will become reality. Your fate is in your hands. Whether you choose a start up, franchise, or existing business, it can be done. It's up to you. Currently, the market is in your favor and the time is right for you to finally put yourself in a position to be your own boss.

http://www.2misi.com/article/2012/06/todays-business-opportunity-market

Is Now the Right Time to Buy a Business?

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Many recently laid off individuals are deciding to become small business entrepreneurs to gain more control over their future, and buying an existing business is top of mind for most of them. In a time of great economic uncertainty, however, many of these aspiring entrepreneurs are now dealing with a difficult decision: Should I buy a business now or wait until the economy turns around?

Here are 3 reasons why now is the great time to buy a business.

 1. Prices are Low

While many of the indicators that are used to track business valuations suggest that sellers can command a premium for good businesses in this market, there is at the same time strong evidence that there are quite a few distressed sellers out there who are willing to sell at a lower price than they might otherwise get in a booming economy.

For many businesses that are selling now, there is a need to sell. Those businesses that have decided not to sell can wait until the economy turns around, but a significant number of businesses for sale that are available right now have a higher sense of urgency.

For would be buyers, this means there are deals out there. If you wait until the economy improves and credit eases, you will miss this window of opportunity. Prices will rise during economic recovery and more buyers enter the market.

 2. Seller Financing Is Available

I know what you are thinking: "I'd love to buy a business, but it doesn't seem like I can borrow the money to do it." The answer to this conundrum is seller financing. As you might know, seller financing is when a seller, rather than a professional lender, assumes responsibility for a percentage of the buyer's investment.

Historically, seller financing typically comes into play when a buyer is unable to secure financing at the owner's selling price. The business owner then has two options: he can either lower the selling price, or work with the buyer and provide seller financing to overcome a potential deal breaker.

These days, many sellers are offering seller financing before they even meet a buyer. Sellers know that banks are not lending, so many are willing to finance the deal themselves. This means you can buy a business right now even if you cannot get bank financing.

Believe it or not, you can usually get a better rate from a seller than you can from a bank. You have considerably more leeway to negotiate the right down payment, the length of the loan, monthly payments and interest rates. Plus, if you pay the loan off early, many sellers also often accept a discounted balance.

3. There is No Time Like the Present

In fact, there are many reasons that businesses that start in a down economy do better than those that don't. Market share is up for grabs because buyers of products and services are scrutinizing expenses.
That gives new business owners a big opportunity. Furthermore, suppliers may be willing to offer great prices because, in this downturn, they are hungry for business. It's also a great time to bring on employees. There are many talented individuals looking for work now, and they may be available at more reasonable rates. That's not going to be the case after the economy turns around. Buyers who learn how to focus on revenue growth and to closely manage expenses during tough economic times can leverage those skills for greater business success as conditions improve.

Remember, when shopping for a business to buy, you are under no obligation to make an offer. So there's really no harm in browsing and, with a little luck, you may find your dream business at a great price.

http://www.2misi.com/article/2012/06/is-now-the-right-time-to-buy-a-business

Best Gift: A Business of Your Own!

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http://www.2misi.com/article/2012/06/buying-business-preparation

It's amazing how we see an immediate increase in our business right after the December holidays and the day after every long weekend. The former may be many "New Year's Resolutioners" as I call them, and the latter is because most people dread the thought of going back to their job after an extended weekend. So, let's pretend it's the holidays right now, and sing to yourself: "All I want for Christmas is a… business of my own…"

If you have any desire to be in business for yourself, then now's the time to make your move! In fact, there has never been a better time to take that step. So this year, buy yourself the greatest gift of all – a business of your own!

Over the past year, I've met and spoken with thousands of people worldwide who have reached the point where they've said: "enough is enough!" Most hate their jobs. They are terribly uncertain about the future. They're tired of busting their butt with little or no thanks and they've finally realized that controlling their own destiny is what they truly want from their career.

The market itself for would be entrepreneurs is exploding, regardless of what the so called "experts" may say about the economy. In prior times, when mass layoffs took place, displaced workers simply adopted the strategy of looking for another job. Unfortunately, jobs are not plentiful today. If you've spent anytime looking for a job, you know how frustrating, humiliating and time consuming the process can be, with no results.

If you are one of the lucky ones to still be employed, instead of waiting around for your company to let you go because they had one bad quarter and now want to save their way ahead at your expense, take control of your future and fire your boss!! This is going to be YOUR year!

I can assure you from my own personal experience that, if you have the desire to be your own boss, it's something that is within your reach. Moreover, with a few right moves, you'll accomplish your goal within six months or so.

The Best Investment You Will Ever Made

When buying a business, you can and should expect to make at least 25%-33% return on your cash investment. Plus, you will have the opportunity to produce a steady personal cash flow, and you'll be building value that will pay you handsomely when the day arrives to sell the business.

Many people wrongly believe that acquiring a business is a risky investment. Personally, I think that putting your fate in someone else's hands has a heck of a lot more risk to it. While there is some inherent risk buying a business, much, if not all, can be eliminated simply by doing your research beforehand on any business you consider purchasing.

 

Do Something

It's funny, but "The New Year's Resolutioners" are typically people who said the same thing last year and most probably will do so again next holiday season. My father-in-law has a better name for them: he calls them: "gonnas"… they're 'gonna' do this, they're 'gonna' do that, yet another year passes and they do nothing.

Don't join that crowd; it's a one way ticket nowhere. You can set everything in place to right now and with a few simple steps, you'll be on your way:

Step One: Educate Yourself – no matter what type of career you have, nothing you've ever done has prepared you for this process. Even if you're in charge of corporate acquisitions, you're now playing with your money and future and it's a whole different mindset. Many people wrongly confuse their confidence to run a business with their inexperience to buy a good business. As such, devour as much information as possible about buying a business.

Step Two: Take the time to properly assess your strengths and weaknesses. Take an honest inventory of yourself. Your goal is to buy the right business. The guiding principal is this: "whatever it is that you do best must be the single most important driving factor of any business you consider purchasing." Don't try to be something you're not. It's fine to learn a new skill when you're working for someone, on their dime, but not at your expense.

Step Three: Put together your "laundry list" of what you want in a business. Be specific. Don't say: "I want it to make a lot of money." Rather, identify the characteristics it must have. For me it's simple. Any business I buy must be: sales/marketing driven, contain an element of exclusivity (either in product or territory), have high margins as I don't want/like to sell a product or service based on price,) and there must be demand for the product or service the business offers (creating demand is way too expensive). Assemble your five point list, and do not stray from it. This must be the litmus test that you put every business through. If any business does not subscribe to your rules – don't buy it!

Step Four: Set a timeline: sticking to a timeline is critical. Each year seems to go faster than the last one. Don't allow yourself to be in the same position next year. Six months from today you should be in your own business.

Step Five: Above all, get into the game. Search businesses for sale listings. The 2misi.com website is an ideal place to conduct your search. Don't get overly analytical in the early stages. Arrange meetings at potential businesses. Don't be afraid to make offers.

Buying Business Preparation

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It is crucial that you prepare yourself properly and educate yourself for this journey and take the necessary steps to be certain that you make all of the right decisions along the way.

Starting Off Right

It is estimated that 70% of all searches by business buyers are now conducted via the Internet. You must first identify what type of business is right for you and then focus your search accordingly. Take a good look at yourself. What are your strengths, weaknesses, likes and dislikes? Don't try to be something you're not.

Most people simply don't know what's right for them and that's fine. If this is your predicament, sometimes it's best to start by ruling out all of the businesses you don't want. Next, consider your finances and focus solely upon those that make sense from an investment perspective. With these two criterias alone, you'll be able to whittle down the choices.

Educate Yourself About This Process

Unless you have a wealth of experience buying businesses, it is critical that you acquire the necessary knowledge and information to make this decision. You are going to face an onslaught of decisions throughout this process. Having the knowledge will likely make the entire difference between buying the right business and the wrong one.

It is extremely important to find quality professionals that specialize in business transactions of the size and type you are considering. It is incumbent upon you to take the time to learn what is involved and how to successfully navigate your way to your dream. Think of it this way: if you're going to invest your savings to buy a business; shouldn't you first invest the time to learn how to buy the right one? It's been proven over and over again that well informed, properly prepared buyers acquire good businesses. This is one decision you must get right the first time!

Determine Your Investment Level

Determine with absolute certainty how much of your own cash you are prepared to invest. Don't bother looking at businesses that are unaffordable. Over 80% of small business purchases involve seller financing. Generally, this is 30% to 50% of the purchase price. If you have US$ 100,000 to invest, don't look at businesses that will sell for US$ 200,000.

Also, take the time to sit down with bank loan officers to research all avenues for your financing. They provide all types of loans for entrepreneurs financing a business purchase.

Business Supervisor - Do You Need One?

I am a firm believer in using a business supervisor to help you throughout the process. A good business supervisor can, and will:

• Provide you with access to a vast database of businesses for sale
• Walk you through the valuation process
• Provide you with comparable business valuations
• Keep the deal moving along when obstacles are encountered
• Be the bearer of bad news to the seller when necessary
• Ensure all pertinent documents are assembled for the closing

Your Five Steps to Success

Commit to a deadline for buying a business (not just "looking" for one).

1. Set aside time every day to work on this project.
2. Organize your finances.
3. Work on determining what type of business will thrive from your strengths and not suffer from your weaknesses.
4. Seek professional advice from a qualified business supervisor.
5. Unless you have a wealth of experience buying businesses, then educate yourself about this process. Learn as much as you can. When it comes to investing in your future, you can never know too much!

http://www.2misi.com/article/2012/06/buying-business-preparation

Hello, welcome to 2misi.com

 

2misi.com

http://2misi.com/about/

2misi.com functions principally like a classified ads in a business newspaper in which a business seller posts an advertisement. They place an ad that business buyer alike (investor, franchisee and business angels, private equity, venture capitalist) read and are able to respond to. But only when the business seller decides to accept, then the business buyer able to receive more information and or make contact directly.

2misi.com regularly advertised at newspaper, magazine, exhibition, events, road show, google and massive online marketing program in order to attract business buyers and business sellers equally.  

2misi.com provides the best opportunity to buy or sell your business.

2misi.com has advertisement listings for all kind of legal business from small to medium businesses, large established businesses, business projects, great business ideas and franchises for sale.